CBK Receives Ksh22.6 Billion in Treasury Bond Switch Auction, Exceeding Target

The Central Bank of Kenya (CBK) has recorded strong investor interest in its recent Treasury bond switch auction, attracting bids totaling Ksh22.58 billion—well above the Ksh15 billion target.

The auction, conducted on August 24, 2026, focused on the FXD4/2019/010 Treasury bond, which carries a coupon rate of 12.28% and matures on November 12, 2029. Investors were invited to switch selected Treasury bills and an older Treasury bond for this longer-dated instrument.

Auction Details

• Bids received: Ksh22.58 billion (150.55% of target)
• Bids accepted: Ksh22.51 billion (Ksh22.42 billion competitive, Ksh93 million non-competitive)
• Market weighted average rate: 11.2395%
• Weighted average rate of accepted bids: 11.2391%
• Bid-to-cover ratio: 1.00
• Bond maturity: 3.23 years remaining

The auction targeted holders of Treasury bills issued under codes 2685/091, 2646/182, 2574/364, and the FXD1/2021/015 Treasury bond. Participation was voluntary, allowing investors to switch part or all of their holdings.

Context and Outlook

This bond switch is part of the government's ongoing domestic debt management strategy aimed at refinancing maturing debt and managing public expenditure efficiently. The successful auction sets the stage for upcoming Treasury bond issuances planned for September 2026, with specific terms to be announced in due course.

Settlement for this auction is scheduled for August 26, 2026.